Raymond James energy analyst Pavel Molchanov wrote: ” The net loss of $(0.06) per share was much better than our estimate of $(0.19) and consensus of $(0.18). Following its (amicable) divorce from Shell, Codexis is in a transitional period as it aims to reposition itself in the fuels and chemicals arena, in addition to growing its base pharma business. Balancing Codexis’ opportunity to be an early mover in cellulosic biofuels with the decidedly hazy commercialization timeline, we maintain our Market Perform rating.

“The 1,500-liter demonstration facility in Italy with partner Chemtex is progressing on track for a mid-2013 startup,” Molchanov added. “Codexis continues to work on its strain, with a particular focus on boosting yield. {Meanwhile} activity is progressing slowly with Raizen, which has yet to give clear targets for Gen2 biofuel scale-up. As we’ve mentioned before, supermajors like Shell invariably move slowly on new technologies, and that is holding true with the Raizen JV.

“As promised, Codexis went about the hard, but crucial work this quarter of strategically realigning the company for its forward growth strategy following the loss of Shell funding,” said John Nicols, President and CEO of Codexis. “In parallel, we are encouraged by solid developments in our pharma business having recently finalized a new, more profitable business arrangement with our manufacturing partner, Arch Pharmalabs. We are also developing early prospects for commercialization partners for our CodeXyme™ cellulase enzymes, which produce cellulosic sugars,” Nicols added.